ETF Analyst Comments on ARKB Outflows: A Reality Check for Crypto’s Hodler Class

In a modest yet positive development, U.S. spot bitcoin exchange-traded funds (ETFs) saw a net inflow of $39.5 million, even as the ETF ARKB experienced a substantial outflow of $87.5 million. Despite ARKB’s significant outflow surpassing that of GBTC, Grayscale’s Bitcoin Trust also faced a reduction, with approximately $81.9 million being pulled from its funds.

ETF Analyst Eric Balchunas Sheds Light on ETF Dynamics Amid Crypto Market Fluctuations

Recent data shows that the trading volume for spot bitcoin ETFs on Tuesday amounted to approximately $2.86 billion, accompanied by a net inflow of around $39.5 million. This figure is slightly below the $3 billion volume recorded on the previous day, April 1. Conversations within the crypto community have intensified regarding the notable outflow from Ark Invest’s ARKB and Grayscale’s GBTC, marking a notable occasion where ARKB’s reduction surpassed that of GBTC.

Bloomberg’s senior ETF analyst Eric Balchunas highlighted the vigorous reactions on ‘crypto Twitter,’ also referred to as ‘CT,’ triggered by the news of ARKB experiencing a day of outflows. “Seeing some of CT up in arms over ARKB having an outflow day, which really shows the greedy and short-sighted nature of some of the folks in this space tbh,” Balchunas wrote. He added that ETFs often experience outflows as part of their normal lifecycle, with even major players like Vanguard not being immune.

The analyst added that despite occasional outflows, ETFs generally maintain a net positive inflow, evidencing the presence of committed investors. He stressed that the recent phenomenon around ARKB, which amassed $2.8 billion in under three months, underscores the significant impact of ETFs on the bitcoin market; without such investment vehicles, bitcoin’s value might be markedly lower. “The ‘ten’ are a team, and yest they saw net inflows as team , yet BTC went down like 6% = the selling (as usual) is coming from your fellow supposed hodlers. Y’all need to look in the mirror to find culprit I’m afraid,” Balchunas added.

The analyst continued:

Brace yourself going [forward], some of these ETFs will see outflows. I’m personally surprised IBIT and FBTC haven’t yet, not even one day, but eventually they will. It’s ok, sign of maturing category.

As previously covered by News on April 2, an onchain analysis by Glassnode revealed that long-term holders have been capitalizing on their investments. The significant spending of vintage bitcoin in March, including 5,000 BTC originating from 2010, underscores that veteran BTC owners have clearly been cashing out while the BTC price has been high.

Source: Bitcoin

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